The biggest risk to your 401(k) principal.
Is not a stock market decline.
There is an even larger 401(k) risk.
That gets little or no attention.
It’s the risk of owning the wrong mutual funds inside your 401(k).
And not realizing the cost in real 401(k) dollars.
What that choice is costing in actual dollars.
Yes, your 401(k) account value is “up” over the last few years.
A 401(k) can be growing and still be falling behind.
The more useful comparison is an independent ranking.
Of all your default 401(k) mutual funds.
Rank versus the stock market benchmarks.
Rank versus peer group mutual funds.
Rank head-to-head versus all other 401(k) mutual funds.
The investment performance difference.
Is your 401(k) “cost of the problem.”
If the mutual fund you own is up 10%.
And another mutual fund in your 401(k) is up 15%.
The dollar gap can be measured.
The “cost of the problem” is 401(k) investment returns you don’t have.
By hanging on to lower-ranked 401(k) mutual funds.
You took 100% of the 401(k) investing stock market risk.
You did not receive the investment return rewards you deserve.
Change your 401(k) monitoring from, “Am I making money in my 401(k)?”
To: “Do I continue to own the best mutual funds available in my 401(k)?”
Interested in where you 401(k) mutual funds rank now?
Let’s get and I can share the details.
P.S. The is a dollar gap between the best and worst mutual funds in your 401(k).
